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UMASS/AMHERST 



ity Library 



I .i 1. 1 



312066 0334 6107 6 

76th Congress, 1st Session 



STACK 

354.SI 

House Document No, 94 I » O ( 



SECOND ANNUAL REPORT 

OF 

THE PRESIDENT 

OP THE 

PHILIPPINES 

TO THE 

PRESIDENT AND THE CONGRESS 
OF THE UNITED STATES 

COVERING THE PERIOD 
JANUARY 1 TO DECEMBER 31, 1937 



76th Congress, 1st Session House Document No. 94 



SECOND ANNUAL REPORT 

OF 

THE PRESIDENT 

OF 

PHILIPPINES 

TO THE 

PRESIDENT AND THE CONGRESS 
OF THE UNITED STATES 

COVERING THE CALENDAR YEAR 
ENDED DECEMBER 31, 1937 




January 9, 1939. — Referred to the Committee on Insular Affairs 
and ordered to be printed 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1939 



STACK 

P531 



TABLE OF CONTENTS 



Page 

Relations with the High Commissioner 1 

General conditions 1 

N'ational economy 2 

Public finance 4 

Provincial, city, and municipal finances 5 

Government-owned corporations 5 

Overseas trade 8 

Mining 8 

National defense, 8 

Public instruction 10 

Administration of justice 13 

Labor and social justice 14 

Public works 15 

Civil service 15 

Legislation 16 

National relief 16 

Institute of National Language 17 

Elections 17 

Woman suffrage 18 

Census commission 18 

Immigration and emigration 18 

Visit to the United States 18 

Philippine-American trade conference 19 

Conclusion 19 

Appendixes 21 

Appendix I. Financial operation of the Commonwealth government during 

the fiscal year 1937 21 

Appendix II. Expenditures by functional purposes 22 

Appendix III. Statement of total assets, liabilities, and surplus, all funds. 23 

Appendix IV. Public debt 23 

Appendix V. Currency circulation 24 

Appendix VI. Government-owned corporations 25 

Appendix VII (a). List of the more important measures passed at the 

second regular session and special session of the national assembly 25 

Appendix VII (b). List of the more important executive orders issued by 

the President of the Philippines 26 

Appendix VIII. Overseas trade during the period under review 26 

III 



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MESSAGE FROM THE PRESIDENT 



To the Congress of the United States: 

As required by paragraph (3) of section 7 of the act of Congress 
approved March 24, 1934, entitled "An act to provide for the complete 
independence of the Pliilippine Islands, to provide for the adoption of 
a constitution and a form of government for the Philippine Islands, 
and for other purposes," I transmit herewith, for the information of 
the Congress, the second annual report of the President of the Philip- 
pines to the President and the Congress of the United States covering 
the calendar year ended December 31, 1937. 

Franklin D. Roosevelt. 

The White House, 

January 9, 1939. 



ANNUAL REPORT OF THE PRESIDENT OF THE 
COMMONWEALTH OF THE PHILIPPINES FOR 
THE YEAR 1937 

Malacanan Palace, Manila, June 21, 1938. 

The President and the Congress 
OF THE United States, 

Washington, D. C. 
Sirs: Complying with the provisions of section 7 of the act of Con- 
gress of March 24, 1934, Pubhc, No. 127, known as the Tydings- 
McDuffie law, which provisions are embodied in the ordinance ap- 
pended to the Constitution of the Philippines, section 1, paragraph 
20, I have the honor to submit my annual report of the proceedings 
and operations of the Government of the Commonwealth of the 
Philippines for the year 1937. 

RELATIONS WITH THE HIGH COMMISSIONER 

The first United States High Commissioner, the Honorable Frank 
Murphy, resigned on December 31, 1936, and was succeeded by Hon. 
Paul V. McNutt. The new High Commissioner arrived in the Philip- 
pines and assumed the duties of his office on April 27, 1937. The 
cordial relations existing between this government and the High 
Commissioner's office have continued and have been placed on a per- 
manent basis. A frank and friendly understanding that is mutually 
conducive to the satisfactory conduct of business between the two 
governments has been established. I desire to record here my appre- 
ciation of the sympathetic and helpful attitude of High Commissioner 
McNutt toward the problems of the Commonwealth government. 

GENERAL CONDITIONS 

The year 1937 was marked by satisfactory progress along many 
lines. General health conditions were good, and although the islands 
were visited by two destructive typhoons, the relief measures promptly 
taken prevented the appearance of epidemic diseases and alleviated in 
a large measure the hardships and distress of the people of the stricken 
areas. 

Educational opportunities were further extended, and the children 
in the schools now number nearly one and a half millions. Under a 
new law providing means for adult education, more than 500 commit- 
tees were organized with a membership of nearly 5,000, and 164 civilian 
adult schools with over 10,000 pupils were established. 

Peace and contentment prevailed. Only in a small area in the 
Province of Lanao, island of Mindanao, there was a small band of 
outlaws for the capture of which it became necessary to use the Con- 
stabulary. 

Finances are sound and stable with the greatest accumulated sur- 
plus of funds in the history of the islands, this being largely due to the 



2 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

receipt from the Treasury of the United States of accumulated taxes 
on coconut oil. Trade continued to expand and reached a volume con- 
siderably in excess of 1936, as regards both imports and exports. 
Agricultural production showed an increase over 1936. 

NATIONAL ECONOMY 

In furtherance of plans for economic adjustment and development 
to meet the national needs, several steps were taken toward objectives 
which have been approved by the National Economic Council. 

The National Power Corporation, created on November 3, 1936, 
upon approval of Commonwealth Act No. 120, "for the purpose of 
undertaking the development of hydroelectric power and the pro- 
duction of power from other sources and for other purposes," was 
organized early in January 1937. The corporation has made pre- 
liminary reconnaissances, surveys, and other technical investigations, 
including the compilation of hydrographic and hydrologic data, of 
nine rivers in eight provinces and the installation of a Diesel power 
plant for the port area of Manila. The work has included topographic 
surveys, foundation investigations, comparative studies on costs of 
fuel and water-generated power, plans, and estimates, and a power 
market study. 

In pursuance of its industrialization program, the government 
continued studies of industrial projects ^\^th a view to establishing such 
projects on a commercial scale. As a result of these studies, the 
National Development Co. has taken the first steps to establish a 
pacldng plant and a can factory to meet the requirements of the 
fishing industry. 

A soil survey of the Philippines is now in progress in order to 
establish a more scientific basis for a national agricultural program. 

In order to assist home seekers in Mindanao and Sulu in the selection 
of settlement sites best adapted to the kind of agriculture in which 
they are proficient, a study of the adaptability of home seekers to 
those regions and the suitability of the soil to their particular agricul- 
tural needs has been undertaken. 

New rules and regulations were promulgated governing the acqui- 
sition of public lands, forest concessions, leases, license agreements,, 
fishpond permits, fishing boat licenses, mining and oil concessions in 
Mindanao and Sulu. 

The National Produce Exchange, established this year by Common- 
wealth Act. No. 192 to provide an organized central market for local 
agricultural products is directing its efforts to improving the system 
of marketing these products. 

Taxation. — The present administration is committed to a revision 
of the Philippine tax system with a view to insuring a more equitable 
distribution of the burden of taxation. It is the aim of the govern- 
ment to develop fixed revenues adequate for normal increasing require- 
ments. The amount required, if distributed in accordance with the 
principle of ability to pay, will not be burdensome. The general 
revision of taxes is now under study and new bills have been drafted 
for presentation to the National Assembly. 

Nine laws providing for increases in certain specific taxes were 
enacted in 1936 and hsted in my last report. These laws provided 
a substantial increase in the revenues for 1937. Taxes were increased 
on inheritances; incomes; refined mineral oils and other motor fuels; 



ANNUAL REPORT OF THE PRESIDENT OF THE PPTILIPPINES 3 

automobiles, trucks, and other vehicles; gross receipts of theaters, 
cinematographs, concert halls, cabarets, race tracks, and other places 
of amusement; fermented liquors; the gross output of mines; and on 
dealers in leaf tobacco. The taxes received from the above sources 
in 1937 exceed those received from the same sources in 1936 by nearly 
F20,000,000.* 

On the other hand Commonwealth Act No. 238, approved Novem- 
ber 15, 1937, abolished the cedula tax upon which the provinces, 
municipalities, and cities had depended as a source of revenue. To 
replace losses in revenue suffered by these subordinate units through 
abolition of the cedula tax, Commonwealth Act 241, approved Decem- 
ber 9, 1937, made an appropriation of F5, 000, 000 from funds of the 
Commonwealth government. 

The cedula tax existed during the Spanish regime and was con- 
tinued under American jurisdiction. In the deliberations of the 
constitutional convention, there were clear indications of the desire 
to abolish this tax by means of a constitutional provision. It is a 
tax that bears directly upon those who can least afford it, and is, 
therefore, contrary to sound principles of taxation. 

Coconut-oil tax. — Revenue received from the coconut-oil tax col- 
lected in the United States under section 602}^ of the Revenue Act 
of 1934 is not placed in the category of regular budgetary incomes. 
The policy is that expenditures therefrom shall be for special non- 
recurring purposes as authorized by the National Assembly. 

It is proposed that this income shall be largely devoted to projects 
that will further the government's program for meeting economic 
and social problems. The following quotation from my message of 
October 18, 1937, to the National Assembly indicates the policy of the 
government in this connection: 

The promotion of social justice by the State is a clear and categorical mandate of 
our Constitution. Our platform, the platform upon which you and I have been 
elected, imposes upon us the high duty of enacting measures that will improve the 
living conditions of the laborer and of carrying these measures into effect. We must 
see that laws are enacted which will leave no loopholes that may be used to defeat 
the ends of justice. We must rely for the security of this new nation, not so 
much upon the might of brutal force but upon the undivided loyalty of every 
citizen to the government- — a loyalty founded upon individual consciousness that 
this government is his and that it exists only for his protection, for his liberty, 
and for his happiness. 

Both the Department of Justice and the Department of Labor are ready to 
help you in the preparation of the measures that are required to fill the gap that 
may be found in our existing legislation for the purpose of correcting prevailing 
social evils and of carrying into effect the provisions of the Constitution as well 
as the commitments in our platform. 

THE PEOCEEDS OF THE EXCISE TAX ON OIL 

Fortunately for us a new source of income has come to our hands that wiU 
facilitate the carrying out of our program of social justice and economic readjust- 
ment. From the proceeds of the excise tax on oil there has been accumulated 
up to the end of June 1937 the sum of P95,507,227.30 in the Federal Treasury, 
the transfer of which amount to the Treasury of the Philippines I had secured 
before I left America on my last trip. This sum is now available for appropria- 
tion, the understanding with the Treasury Department of the United States being 
that out of that fund P10,000,000 will be available upon 30 days' notice and the 
balance upon 90 days' notice. 

The final decision as to how this fund shall be spent is, of course, yours. But 
in the exercise of my constitutional prerogative I shall take the liberty of making 
some suggestions regarding the purposes for which this money should be spent. 

* The Philippine peso equals 50 cents United States currency. 
119579—39 2 



4 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

The first thing that we must bear in mind is that this fund does not constitute 
an ordinary income of the government upon which we may depend for recurring 
obhgations. When independence shall have been granted, this source of our 
income will cease. Were we to defray from this fund services that we cannot 
maintain once this income is terminated, we would have thrown away the money 
thus spent. We must, therefore, limit the use of this fund for what might be 
termed capital investments or for self-supporting enterprises. Above all, we 
should use this fund for national objectives, for purposes where the greatest good 
may be derived by the Filipino people. 

Concretely, I recommend that this fund be devoted to the followmg purposes: 

1. To improve the sanitary condition of centers of population by constructing 
water systems or artesian wells. 

2. For combating malaria where there is assurance that it can be done at a 
reasonable expense. 

3. For the prevention of tuberculosis and the establishment of more sana- 
toriums, as it is well known the white plague is the worst scourge afflicting our 
race. 

4. For the building of new leprosariums which will permit lepers in the early 
stage of their disease to be treated where they may be easily reached by their 
families, thus making their isolation less tragic. 

5. For extending free dispensary service to the poor not only in centers of 
population but also in outlying barrios and communities. 

6. For the building of public schools in every barrio where there is a sufficient 
number of children justifying the opening of the school. 

***** * * 

7. For opening national highways and helping in the construction of provincial 
and even barrio roads whenever the respective provinces and municipalities 
pledge themselves to maintain the roads thus constructed, and in the case of 
barrio roads, where the volume of traffic on said roads also justifies their con- 
struction. 

8. For the construction of office buildings for the national government so as 
to reduce, if not eliminate, the continuous expense in rents. 

9. For the purchase of large landed estates and their resale in small lots to the 
actual occupants thereof. 

10. For the development of water power, the reforestation of denuded areas 
the colonization and development of Mindanao; and 

IL For the financing of a long-range program of economic adjustments neces- 
sary to prepare the country for the new situation attending the grant of our 
independence, including the establishment of new industries which at the same 
time will give work to the unemployed. 

PUBLIC FINANCE 

The total revenues of the Commonwealth government for 1937 
amounted to i'230,800,026.87. This amount includes Pi 13,827,828.20 
representing the proceeds from the coconut oil tax collected in the 
United States under section 602 K of the Revenue Act of 1934 and 
transferred to the Commonwealth government in 1937. The remain- 
ing f*l 16,974, 198.67 represents revenues from the usual sources as 
compared with a total of i*103, 502,237. 61 for the year 1936, or a net 
increase of P13,471,961.07. 

The total expenditures for the year amounted to f*113, 889, 971.42, 
thus leaving a net gain of normal income over expenditures of i^3,084,- 
227.25. The total excess of income over expenditures including the 
amount received from the coconut-oil tax was i* 116,910,055.47. 

The large increase in the regular income was due largely to addi- 
tional revenues accruing under new tax laws enacted in 1936 to which 
reference is made in my last report. 

At the end of the year the total banking resources of the Philip- 
pines amounted to P378,000,000 as compared with P36 1,000,000 for 
1936 and exceeds that of any previous year in Phihppine banking. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 5 

PROVINCIAL, CITY, AND MUNICIPAL FINANCES 

The 49 provinces of the Phihppines, taken altogether, netted a total 
income of ¥30,556,327.48 for the year 1937, or i»2,052,562.82 more 
than that for 1936. The total expenditures by the provinces for the 
year under review amounted to f30,586,508.84 or an increase of 
i'4,864,493.01 over that for 1936. Except for the provinces of 
Batangas, Bulacan, Cagayan, Cavite, Cebu, Cotabato,_Davao, Iloilo, 
Oriental Negros, Pampanga, and Zamboanga, which incurred small 
deficits, all the provinces registered favorable balances during the 
year 1937. The net fund balance for all provinces in 1937 was 
P2,630,539.15. 

Manila registered an income of -P 10,040,365.07 for 1937 or an 
increase of P518,007.77 over that for 1936. Baguio, which likewise 
made a slight increase in its finances, had a total income of P 1,485,- 
743.92 for the year under review, or an increase of P462,267.85, com- 
pared with that for the previous year. The new chartered cities 
realized incomes as follows: Cebu, Pl,221,175.29; Davao, P757,764.88 
Iloilo, P707,381.63; and Zamboanga, P629,883.21. 

The municipalities and municipal districts in general have shown 
an improvement in their financial conditions during 1937. 

GOVERNMENT-OV^^NED CORPORATIONS 

The Philippine National Bank. — During the year 1937, the Philip- 
pine National Bank made a net profit of P3, 197,852. 77; of this 
amount, P820,010.00 consists of recoveries of charged-off assets and 
P58, 113.49 of adjustments of prior periods, so that the total net 
operating profit of the bank amounted to P2, 319, 729. 28, which is 
more than double the net operating profit of the bank in the year 
1935, at the end of which the Commonwealth government was 
inaugurated. In accordance with the provisions of the Rehabilitation 
Act, 75 percent of the net profit for the year was paid to the govern- 
ment and 25 percent thereof became part of the bank's surplus, so 
that on December 31, 1937, the bank's surplus amounted to 
P9, 858, 067. 22, which, together with its capital and reserves, makes 
the present net worth of the bank P26,561,556.54, as against 
P25,744,010.44 on December 31, 1936, or an increase of P817,546.10. 

It is gratifying to note that whereas in previous years the recoveries 
from charged-off assets have always formed the major part of the 
yearly profits of the bank, during the year 1937, such recoveries 
hardly amounted to 28 percent of the total net profit during the 
period. A comparative statement of the net operating profit of the 
bank, exclusive of recoveries, during the years 1935, 1936, and 1937 
shows the marked progress attained by the bank in its strictly banking 
operations: 

Operating net profit 



Year 


Amount 


Percent 


1935 .. . 


PI, 052, 999. 07 
1,700,461.52 
2, 319, 729. 28 


100 


1936 


161 


1937 - 


220 







The total deposits in the bank on December 31, 1937, amounted 
to PI 15,888,753.25 as against P102,038,337.75 on December 31, 



6 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

1936, and its total resources increased from fl41,955,210.95 in 1936 
to i'156,496,328.90 in 1937, or an increase of f'14,541,117.95, out of 
a total increase of JP 17,000,000 in the total resources of banks in the 
whole PhiHppines. 

It is to be noted that during the year 1937 the board of directors 
was composed wholly of officials of the Philippine government, a 
new policy which I am adopting for government-owned enterprises. 

The. Manila Railroad Co. — The operations of this government-owned 
corporation in 1937 showed a very gratifying improvement over the 
preceding year, total railway operating revenues of P8,476,800.27 
being an increase of J'1,408, 361.29, or 19.92 percent, over 1936 
revenues, whereas total railway operating expenses of ¥6, 127,3 12.02 
only increased by ^151,104.81, or 2.53 percent. The operating ratio 
was accordingly reduced from 84.55 percent in 1936 to 72.28 percent 
in 1937. In addition to railway operations, miscellaneous operations 
(highway motor transportation, etc.) produced a net income of 
i*508,678.65 in 1937, or practically double the net income from these 
sources in 1936. The rate of return on railway property investment 
was 2.22 percent as compared with 1.01 percent in 1936 and seven- 
tenths of 1 percent in 1935. The net income of P944,418.97 is an 
improvement of PI, 649,295. 13 as compared with the net loss of 
P704,876.18 shown in 1936. 

The important railway construction project of connecting the main 
line south with the previously isolated line in the Bicol Provinces was 
practically completed in 1937. This work had been carried on inter- 
mittently ever since 1928. Owing to lack of funds, construction had 
been stopped in August 1933, at which time there only remained about 
40 kilometers of railroad line to build in order to entirely close the 
gap, and no additional construction was accomplished for a period of 
almost 3 years. However, in May 1936 arrangements were effected 
to finance the work through the subscription on the part of the Com- 
monwealth government to additional capital stock of the railroad 
company in the amount of PI, 000, 000. By utihzing rails, bridges, 
and other materials from sections of unremunerative branch lines 
that had been authorized to be abandoned, the cash outlay involved 
was reduced to that amount. The work was practically completed 
in 1937, the last rail being laid on November 17. Regular through 
passenger and freight service from Manila to Legaspi was started on 
January 31, 1938. 

The Manila Hotel Co. — The total revenues of the IVIanila Hotel for 
the year under review amounted to ?1, 272, 182. 82. Its expenses for 
the same period amounted to ^^995,265.86, resulting in a total net 
profit of P276,916.96, representing an increase of 45.49 percent over 
that of 1936. 

The National Development Co. — The National Development Co. has 
been converted from a private corporation to a public concern. It 
continued its studies on the establishment of plants for the packing of 
fish, meat, vegetables, fruits, and other foodstuffs. On December 30, 
1937, the company organized the National Food Products Corporation, 
with a capital stock of P2, 500, 000. During the year under review, 
it subscribed to and paid for the remaining P2, 000, 000 worth of 
shares of stock of the National Rice & Corn Corporation. Other 
activities taken up by the company during the year, with a view to 
launching the industriaUzation program of the Philippines on a major 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 7 

scale, were the survey for an electric railway line in Mindanao, inves- 
tigation of Philippine coal deposits, test for smelting purposes of the 
Surigao iron ore, study of the establishment of a textile spinning 
plant, the establishment of an abaca central, the establishment of a 
pulp and paper factory, rayon industry, and the manufacture of clay- 
asbestos shingles. 

The Cehu Portland Cement Co. — The net profit of the company, a 
subsidiary of the National Development Co., for the year 1937 
amounted to f»577,029.88 as against i*524,739.24 for 1936, or an 
increase of ^52,290. 64. Its total assets at the end of the year totaled 
P5,466,488.73 as against i'5,224,046.76 for the year 1936, or an 
increase of ¥242,441.97. 

The National Rice & Corn Corporation. — The National Rice & Corn 
Corporation, a subsidiary of the National Development Co., performed 
its functions satisfactorily in 1937, in spite of an abundant crop which 
made it unnecessary to import large quantities of rice from abroad as 
it did in 1936. Reasonable prices were assured to the producers and 
consumers alike through the operation of the corporation. A mini- 
mum price of paddy, sufficient to cover production cost plus a fair 
margin of profit, was guaranteed to the producer, while the available 
stocks purchased and on hand at the beginning of the year served as a 
stabilizmg factor and assured the consumer a steady supply of rice at 
a reasonable price. Price fluctuations during the year were confined to 
very narrow limits, a condition highly advantageous to both producers 
and consumers. With the trade, however, adequately supplied in view 
of the good harvest, sales of the corporation rice were limited and the 
profits realized thereon were correspondingly small and insufficient to 
cover the year's operating expenses. This accounts for the small loss 
of Pi 6, 9 10. 94 at the end of the year, which is considered higlily satis- 
factory, taldng into account the beneficial services rendered by the cor- 
poration to both producers and consumers. 

Rice is the most important single food of the people. The average 
normal consumption requirement of the country is 3,129,000,000 
pounds a year, while the average yield is 3,127,000,000 pounds a year. 
In 1937 the home production exceeded consumption by a fair margin 
of about 131,000,000 pounds, a portion of which is in the hands of the 
National Rice & Corn Corporation being held in reserve for any pos- 
sible emergency. It is the policy of the corporation to keep the surplus 
in any abundant crop year in reserve for tl;e purpose of supplying any 
shortage in succeeding years and thus maintain the level of the price 
of rice within the buying power of the people. 

The Metropolitan Water District.— The total income of the Metro- 
politan Water District for 1937 amounted to P2, 336, 502, and the 
total expenditures to Pl,494,782.07, thus showing a profit of P841,- 
719.93, the biggest ever made by it since its organization. Of this 
amount, P836,811.40 was reinvested to meet payments for the sinking 
fund of the bonded indebtedness and to improve and extend facilities 
in order that the district may be of greater service to the concessioxi- 
aires, thus leaving only P4,906.53 which went to the surplus. 

During the year under review, P4, 000, 000. 00 worth of bonds issued 
under Act No. 1323, representing part of the P8, 000,000 bonded in- 
debtedness transferred from the Manila sewer waterworks system, 
were redeemed by the district. The balance of P2, 000, 000 of this 
issue was redeemed on January 2, 1938. On the other hand, another 



8 AN^iTUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

block of bonds issued under Act 3255, with a total par value of i*500,- 
000 was sold on April 1, 1937, at a total premium of f*49,705.50. 
The net worth of the district as of December 31, 1937, amounted to 
^15,787,879.03. 

OVERSEAS TRADE 

The total overseas trade, the highest of record since 1929, amounted 
to F520,583,990, excluding gold, this being an increase of 9.6 percent over 
the 1936 figure of P475, 148,544. Shipments to the United States were 
12 percent greater than in 1936 and made up almost 80 percent of the 
total exports. The value of sugar shipments to the United States de- 
clined somewhat due to lower prices, although the volume was about the 
same. A larger proportion of the copra exports went to the United 
States than in the preceding year due to the favorable differential 
enjoyed by Phihppine copra over foreign copra in the processing tax 
on coconut oil manufactured in the United States. The value of 
copra shipments due to better prices was greater than in 1936, although 
the volume was considerably less. 

Imports amounted to F218, 051,490, or 7.8 percent increase over 
1936, a notable increase being in iron and steel, machinery and cotton 
cloth. There was a marked increase in cotton textiles purchased from 
the United States and also of cotton cloth from Japan. 

The visible balance of trade in favor of the Philippines exceeded all 
previous records and amounted to f*^84,481,010. Including gold 
exports, this favorable balance aggregated about Pi 15,000,000. As 
in previous years, this was entirely due to a heavy favorable balance in 
the trade with the United States, except for small balances of F7,244,- 
919 with Great Britain, ^1,658,680 with Italy, and Fl,227,112 with 
Denmark. There was an unfavorable balance totaling F43,747,390 
principally with Germany, Netherlands, Canada, Switzerland, Japan, 
China, Australia, Netherlands Indies, British East Indies, French 
East Indies, Siam, and other coimtries. 

MINING 

The gold production amounted to P51,253,821 as compared with 
^44,394,552 for 1936, or an increase of P6,859,269. Despite the set- 
back caused to the mining industry by speculative activities resulting 
in the stock mining crash in 1936, referred to in my last report, it is 
expected that mining %vill continue to be one of the most important 
industries in the Philippines, and, as regards value of production, it 
now ranks in third place, being exceeded by sugar and coconut 
products only. All shipments of gold and gold ores go to the United 
States. Among other minerals being developed, iron ore is finding 
its principal market in Japan. During the year there was shipped to 
Japan about 700,000 tons of iron ore. Chromite is also being mined, 
the output of this ore being shipped to the United States. 

NATIONAL DEFENSE 

At the beginning of the year, 20,000 young men comprising the first 
class selected for mihtary training under the provisions of the National 
Defense Act, reported to military stations for instruction. This event 
symbolized attainment of the basic objective toward which all the 
preparatory work of 1936 had been directed. While construction of 
barracks and quarters had not been entirely completed and the pro- 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 9 

fessional qualifications of instructional groupments still left much to 
be desired, yet the actual initiation of citizen training established a 
definite milestone in progress toward the development of adequate 
national security. 

For the year 1937, training cadres were, with few exceptions, 
organized as infantry units. The exceptions were artillery organiza- 
tions at Camp Dau, and engineer, medical, signal, and quartermaster 
units at Camp McKinley, at which places training was conducted 
under the direct supervision of personnel of the United States Army. 
At every station throughout the islands, each succeeding month 
witne sed a general improvement in training and administrative 
efficiency, marked by enthusiasm on the part of trainees and devotion 
to duty on the part of instructors. 

At the end of June the members of the first 20,000 trainees received 
their assignments to reserve units and were replaced in the cadres by 
another class. This was repeated at the end of December, the whole 
representing a typical training year under the defense plan. The 
product of each year's training camps yields the equivalent of three 
infantry divisions, supplemented by such reserve, auxiliary, and 
labor elements as are required to support this number of tactical 
units. 

Beneficial byproducts of trainee instruction proved equal to antici- 
pations. Statistics show that the average trainee was greatly im- 
proved in health and physique, while in every case he absorbed new 
conceptions of sanitation, citizenship, organizational discipline, and 
team work. In many cases, illiterates gained the rudiments of 
elementary education, while vocational instruction, particularly in 
agriculture, was productive of splendid results. Within this single 
year the national benefits of a nonmilitary nature to be derived from 
the adopted system of military training were clearly demonstrated. 
However, the principal objective of the plan, in which is found the 
only true measure of its ultimate worth, is its effectiveness in providing 
to the country maximum security against aggression and violence. 
By this standard the developments of the past year served only to 
confirm the government's early convictions as to the soundness and 
appropriateness of the adopted plan. 

By the end of the year, all training cadres were operating at satis- 
factory capacity. From them there were gradually evolving in 
every province and barrio of the islands, nuclei of military units, 
each to be additionally trained in each succeeding year for the defense 
of its home area. Regular troops, which, aside from Constabulary 
elements, are as yet mainly concentrated at Camp Murphy just 
outside Manila, made great strides during 1937 toward attaining 
satisfactory standards of efficiency. A staff school was established 
in Baguio, and the schools for candidates for reserve commission, in 
San Miguel, Tarlac, and Camp Keithley, Lanao, respectively. Prog- 
ress in the Military Academy was particularly gratifying. This school, 
established only 2 years ago after the West Point pattern, is rapidly 
earning a reputation as a training center of outstanding excellence. 

The higher staff of the Army showed a constantly improving tech- 
nique in the handling of major problems, and the supply system was 
revised and overhauled to conform more closely to the needs of the 
expanding organization. 

Air Corps progress was maintained according to plan, and near 
the close of the year the first class of pilots trained exclusively at the 



10 ANNU.\L EEPORT OF THE PRESIDENT OF THE PHILIPPINES 

Philippine Army Aviation School was graduated at Camp Murphy. 
Additional planes were acquired, the flying field and auxiliary facilities 
were improved, and assistant flying instructors were developed from 
among Filipino pilots. This institution is now ready to begin func- 
tioning at scheduled capacity. Air Corps instruction continues to 
emphasize quality above quantity, but experience to date furnishes 
ample evidence that the adopted program will assure the availability, 
at the required time and in required numbers, of Filipino pilots of 
real aptitude and skiU. 

Many problems remain to be solved. The number of properly 
trained officers available for the multitude of important posts is 
deficient. Due to unexpected obstacles, the development of the 
marine elements of shore defenses has lagged. The acquisition of 
reserve equipment and supplies has had to await completion of the 
construction program, to which a large proportion of available revenues 
has necessarily been devoted during the first year of the project. 

Taken as a whole, the accomplishments of the first 2 years of the 
Commonwealth government in developing a reasonable local securit}^ 
for the Philippine Islands give bright promise of eventual success in 
this vitally necessary undertaking. 

PUBLIC INSTRUCTION 

Education. — For the first time in many years the Bureau of Educa- 
tion was not confronted at the opening of schools in June 1937 with a 
shortage of funds for the continuance of all the elementary classes that 
were in operation at the end of the previous school year in March 1937. 
Although the emergency national aid of Pi, 100, 000 made available 
in 1936 had not been renewed, the lack of this aid was more than made 
up by the income from the cedula tax collections, half of which accrued 
to the municipal school funds in accordance with the provisions of 
Commonwealth Act No. 124. 

There was, however, a strong demand for the opening of new classes 
in which to accommodate a large number of children of elementary 
school age all over the Philippines who were clamoring for admission 
in the public schools. To provide for these new classes, the National 
Assembl}' passed Commonwealth Act No. 234 appropriating 
Pi, 200, 000. This sum was not sufficient, and the undistributed 
amount of P245,711.50 from the equalization fund of the Bureau of 
Education was utilized to open additional new classes, thereby making 
available a total of Pl,445,711.50 for extension classes. This aid 
enabled the Bureau of Education to organize 2,823 new classes and to 
appoint 2,826 teachers which provided for a total enrollment of 
153,600 new pupils. In addition to the above, 803 new classes 
accommodating 43,362 children were opened from municipal funds. 

In 1937 there were 8,913 public schools which had an annual 
enrollment of 1,459,743 cliildren taught by 32,485 teachers. The 
enrollment in September 1937 in the elementary grades was 1,391,756 
as compared to 1,173,879 for the same month in 1936, which was an 
increase of 217,877 over that of 1936. There was also an increase in 
the number of students in the secondary schools, the enrollment being 
56,861 in September 1936, as compared to 65,266 in September 1937. 

In keeping with the constitutional pro\'ision which states that "all 
schools shall aim to develop moral character, personal discipline, civic 
conscience, and vocational efficiency," greater emphasis has been 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 11 

placed on training in character and citizenship. To this end, courses 
of study in character education and citizenship training for the pri- 
mary and intermediate grades have been prepared. A similar course 
of study for use in high schools is under preparation. 

The major problems affecting public education which were taken up 
during 1937 were concerned with compulsory education, revision of 
the school curricula, reorganization of teacher-training institutions, 
and military instruction. 

The Constitution of the Philippines provides that the government 
shall provide at least free public primary instruction. This provision 
is clearly a recognition of the importance of education both to the 
mdividual and to the state. To make free public primary education a 
reality, it is planned to provide within the next school year, beginning 
June 1938, the facilities necessary to accommodate all children of 
primary school age who may seek admission in the schools and to 
enable such children to complete at least the primary grades. It is 
also planned to put into effect not later than June 1940 a system of 
compulsory primary education. A law on compulsory primary edu- 
cation is deemed necessary to lengthen the time that the average child 
remains in school and thus enable him to receive a more adequate 
training for citizenship. 

It is likewise planned to fix the responsibility for the support of the 
primary and of the intermediate schools. In view of the constitu- 
tional provision which guarantees free public primary education, it is 
plarmed to have the national government assume full responsibility 
for the support of primary instruction. The main problems of pro- 
viding salaries for teachers, the cost of buildings and equipment, and 
the textbooks that are now furnished free shall be taken care of by the 
national government. 

Instruction in the intermediate grad_es shall be supported by the 
municipalities and chartered cities with the funds derived from the 
real-estate tax, from the internal revenue allotment, and from other 
sources of revenue that now accrue to the regular municipal school 
fund. Since these funds will most likely not be sufficient to take care 
of any increase in the intermediate grades, legislative measures are 
now under consideration to give the municipal governments the 
power to impose a school tax so as to avoid the necessity of requiring 
pupils in the intermediate grades to pay tuition fees. 

To give vocational secondary education a greater impetus, measures 
have been recommended to place these schools on a stable basis which 
would permit adequate planning and a long-range program for their 
development. Legislation is now under consideration which would 
set aside a definite percentage of the general funds of the provinces 
expressly for the maintenance of vocational schools. Besides the 
provincial vocational schools, provision will also be made for the con- 
linued national support of regional vocational secondary schools, 
regional normal schools, and special schools already established or to 
be established. 

It is planned to develop four or five regional agricultural schools of 
the Munoz type in different parts of the Philippines, and a similar 
number of regional trade and industrial schools of the type and stand- 
ard of the Philippine School of Arts and Trades but with a greater 
variety of industrial courses. These schools will be maintained by 
the national government, will be well equipped and adequately 

119579—39 3 



12 ANNUAL m<:PORT OF THE PRESIDENT OF THE PHILIPPINES 

staffed, and will serve as models and set the standards for all other 
agricultural and industrial schools. They will offer more advanced 
instruction than that given in the provincial schools with a view to 
training leaders for the different industries. 

Private schools, colleges, and universities continued in 1937 to 
perform an important educational function in the Philippines. The 
passage of the new private-school law has improved the standards of 
private schools now in operation and has prevented the opening of new 
schools that are not adequately provided for. 

The office of adult education was created by the first National 
Assembly in order to give effect to section 5, article XIII, of the 
Constitution of the Philippines which provides in part that the govern- 
ment shall provide citizenship training to adult citizens. The office 
of adult education has prepared a program designed to invite and 
attract adults to take advantage of the opportunity of obtaining at 
least the rudiments of education. Ip the beginning, progress was 
rather slow because of the fact that very little was known of adult 
education in this country. Up to the end of December 1937 there 
were 4,964 civic-spirited men and women who had volunteered their 
services to teach illiterates. During the year 1937, 164 adult classes 
were organized in different parts of the Philippines with a total 
enrollment of 10,077. There were also schools for illiterate trainees in 
109 cadres of the Philippine Army with an enrollment of 10,843 during 
the 1937 training periods. Local authorities have become enthusi- 
astic about the work and have pledged their full cooperation. Some 
provincial governments and chartered cities have extended financial 
help to promote adult education in their respective communities. 

Health and samiahon. — In general, the state of public health in the 
Philippines in 1937 was satisfactory. There was no outbreak of major 
epidemic diseases. However, there were some minor outbreaks of 
diseases which required special attention. These included gastro- 
intestinal diseases, dysentery, typhoid fever, broncho-pneumonia, 
measles, influenz,a, diphtheria, poliomyelitis, and cerebrospinal menin- 
gitis. Tuberculosis continues to be the greatest scourge which the 
government has to combat. With the exception of one case of 
cholera reported in August 1935 and one case in April 1937 the 
Philippines have been free from cholera since 1934. 

Further steps have been taken toward a more effective and satis- 
factory examination and segregation of lepers. Under the provisions 
of Commonwealth Act No. 161, three new leprosariums have been 
located in Luzon which will permit the unfortunate victims of the 
disease in the early stages to be treated where they may be easily 
reached by their families, thus making their isolation less tragic. 

The construction of artesian wells, public water supplies, and 
sanitary dug wells was extended to the limit of available appropria- 
tions. The number of hospitals under the Bureau of Health remained 
the same as in the preceding year. The number of beds therein was 
slightly increased. There are at present 532 puericulture centers, 38 
.additional centers having been established during 1937. 

Quarantine. — The quarantine service is administered under the 
direction of the United States Public Health Service in accordance 
with the provisions of section 1130 of the Administrative Code. 
Senior Surgeon Howard F. Smith, detailed as chief quarantine officer 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 13 

for the Philippines, also serves as the officer in charge at the port of 
Manila. 

At the beginning of the year, cholera was present in Siam and 
adjacent areas and the usual precautions were taken with arrivals 
from that locality. Due to the occurrence of cholera in epidemic 
form in various places on the China coast, intensive measures were 
instituted to prevent, if possible, the transmission of the disease 
to the Philippines. Immunization against cholera was demanded of all 
passengers destined for the Philippines. Intensive anticholera restric- 
tions were placed in eflfect from August 7 to December 22, 1937, 
when they were discontinued in view of the improved conditions with 
regard to the occurrence of cholera in the Orient. During this period, 
221 vessels with 34,992 passengers and 29,825 crew, or a total of 
64,817 persons, passed through the Manila quarantine station from 
ports where cholera was reported present. Of the passengers arriving, 
10,407, considered potentially dangerous, were bacteriologically 
examined and 296 were found to be infected with cholera. These 
were isolated and treated before being released to the immigration 
officials. It is satisfying to record that although cholera was present 
with more or less severity in almost every country of the Orient, no 
case of cholera gained access to the Philippines during this period. 

With the advent of aircraft and more rapid marine transportation, 
the sailing time between ports of the Orient and the Philippines is 
yearly lessening, making the early receipt of epidemiological data 
pertaining to the presence of epidemic quarantinable diseases in these 
ports imperative, if such diseases are to be kept from gaining entry 
into the Philippines. American consuls in the Orient also furnished 
the chief quarantine officer of the Philippines with consular sanitary 
reports covering the diseases which occurred in the cities at which 
they were stationed. No case of any of these diseases gained access 
to the Philippines. The purpose of the quarantine service to prevent 
the introduction into the Philippines of such diseases by vessels and 
aircraft may therefore be said to have attained a full measure of 
success. Dr. Howard F. Smith deserves special commendation. 

ADMINISTRATION OF JUSTICE 

Since my last report, in which attention was invited to the several 
acts approved by the National Assembly reorganizing the Supreme 
Court, the courts of first instance, the Public Service Commission, and 
the justice of the peace courts, and creating the court of appeals, the 
Court of Industrial Relations, and the Securities and Exchange Com- 
mission, these reorganized or new bodies have been functioning normally 
and regularly. The Court of Industrial Relations has succeeded in 
resolving several conflicts between employers and employees, and 
between landlords and tenants, to the satisfaction of all parties. a,nd 
has begun the survey of conditions in the sugar and in the cigar and 
cigarette industries with the end in view of determining whether 
it is necessary to fix minimum wages or shares or maximum rental 
thereat. The Securities and Exchange Commission, to which is 
entrusted the function and the responsibility of protecting the public 
against fraudulent practices in speculative enterprises, has, judged by 
its record during the period of this report, more than justified its 
creation. 



14 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 
LABOR AND SOCIAL JUSTICE 

In furtherance of the government poHcy to improve the conditions 
of labor, the Department of Labor was active in safeguarding the wel- 
fare of employees both in industry and agriculture. 

Factory inspection. — Factory inspections covered 3,174 establish- 
ments employing 200,733 laborers. These inspections resulted in 
the more strict enforcement of existing labor laws, especially those 
relating to the promotion of the safety of the laborers. 

Wage claims. — The number of wage claims settled by the Bureau 
of Labor was 2,300 involving the sum of F314,413.42. Of the number 
of claims settled in 1937, 1,621 were in favor of claimants, the amount 
of F179,998.45 having been recovered for them. To tliis should be 
added 197 claims brought by the Bureau of Labor to, and decided by, 
the courts wliich awarded to the claimants the amount of P3,369.84. 
At the close of the year, 1,171 cases, involving 4,760 claimants and 
the amount of F141,943.33, were pending adjustment. 

Criminal cases handled. — Under Act No. 4152, public defenders 
handled, for and in behalf of indigent court litigants, 427 criminal 
cases. Three hundred and tldrty-two cases were disposed of as 
follows: There were 83 pleas of guilty and 59 additional convictions; 
156 were dismissed or the accused acquitted; 34 cases were withdrawn; 
and 95 cases involving 99 persons were pending judgment at the close 
of the year. The crimes for which indigent persons were accused 
ranged from murder to violation of municipal ordinances. 

Workmen's compensation. — The number of accident cases handled 
m 1937 was 6,246, of wliich 4,277 w^ere newly reported cases. One 
thousand eight hundred and twenty cases were closed and the amount 
of F249,843.28 was paid as compensation to the injured laborers or 
their dependents. In 54 of these cases, compensation totaling 
?36,650.27 was awarded by the courts through the intervention of 
the Bureau of Labor, to injured laborers or their dependents. Acci- 
dent fatahties numbered 352 in 1937 as against 244 in 1936. 

Strikes. — Fifty strikes and minor disputes were registered in 1937 
as against 51 in 1936. Of the total number of disputes in 1937, 34 
involved stoppage or suspension of work while 16 were threatened 
strikes. Tliirty-eight disputes were settled with advantage to the 
laborers, wliile 12 resulted adversely. Twenty-three strikes were 
declared by unionists and 27 by unorganized laborers. 

The department also intervened in the solution of 633 tenancy 
cases, of which 421 resulted favorably to the complainants and 212 
against them. One hundred and ninety-four cases were pending at 
the close of the year. 

Free employment agencies. — Of the 3,129 registered applicants for 
employment, 1,107 were placed by the Manila agency of the bureau 
and by representatives in the provinces as compared with 2,055 
persons registered and 1,491 placed in 1936. 

Four hundred and sixty-four contracts involving 19,587 seamen 
were formalized. 

Interisland migration. — Four thousand six hundred and eighty-eight 
home seekers, including members of families, were recruited and 
transported to Mindanao during the year 1937 at a per capita expense 
of F24.67. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 15 
PUBLIC WORKS 

Road construction in Mindanao continued to receive special atten- 
tion during the period covered by tliis report. An appropriation of 
PI, 000, 000 was made available for that purpose, with which the first 
through highway across the island was completed and is now open 
to motor vehicle traffic. This road connects the port of Iligan on 
the north to the port of Davao on the south, via the Lake Lanao 
region and Cotabato, a distance of 412 kilometers and has already 
proved of great benefit to immigrants from the northern provinces. 

By an executive order, effective January 1, 1937, all public high- 
ways were classified as national, provincial, or municipal, and the 
corresponding branches of the government were charged with respon- 
sibility for their construction, improvement, and maintenance, thereby 
coordinating the efforts of all agencies concerned with highway work. 

During the year, the sum of P2 1,562, 076. 38 was expended for the 
construction and upkeep of roads and bridges, an increase of 29 per- 
cent compared with 1936. Three hundred and seventeen kilometers 
of first-class roads and 405 kilometers of second-class roads were 
built, which increased the total kilometerage of such highways to 
17,458. Twenty-three bridges were completed with an aggregate 
span of 904 meters, at a cost of Pi, 092, 107. 89. Expenditures for port 
improvement and maintenance amounted to approximately P2, 300, 000 
and PI, 400, 000, respectively. 

The Bureau of Aeronautics, created last year through the passage 
of Commonwealth Act No. 168, made substantial progress in the 
preparation of a comprehensive program of airport construction and 
operation, designed to foster safe and efficient air service throughout 
the country. 

The accumulation of a large fund from the coconut-oil tax has made 
it possible to prepare an extensive public-works program of perma- 
nent improvements. The program contemplates a total expenditure 
over a 4-year period of P96,141,300. This program, which is without 
precedent either in amount or scope, is based on present financial 
condition of the government and covers only funds already available 
without entailing a burden on future income. No recurring expend- 
itures are contemplated that cannot be provided for from current 
ordinary income of the government. With the exception of local 
roads, the appropriations requested are based on completed projects. 

The projects relate to schools; hospitals; flood control; improve- 
ments in cable, radio, and telegraph stations; bridges; Manila air 
port; national park roads; Tagaytay townsite; and reclamation of 
swamp lands in parts of the city of Manila. As the work will spread 
over several years, it is not expected that the large expenditure will 
create any general rise in the price of commodities. 

An appropriation of P5, 050, 000 was made in 1937 for school build- 
ings, to be expended in 1938. Out of this appropriation, construc- 
tion of new buildings and additions to existing buildings have been 
provided for in 297 barrio and municipal schools. It is believed that 
not more than P12,000,000 will have to be appropriated for 1939. 

CIVIL SERVICE 

Pursuant to the provisions of the new civil-service law, which make 
the civil-service rules applicable to all branches and ramifications of the 
government service, 40,000 employees hitherto not affected by civil- 



16 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

service rules were brought under the merit system. As a consequence, 
the Bureau of Civil Service was called upon to give a number of 
"qualifying" examinations for unqualified employees, in addition to 
the technical examinations and the entrance examinations to recruit 
eligibles for newly created positions. 

During the year 1937 there were 12,271 appointments made to the 
classified civil service. The large number was due to the inclusion in 
the service of the municipalities, the newly chartered cities, and the 
agencies formerly not embraced in the Philippine civil service. One 
hundred and forty-six persons, including 46 Americans, were granted 
retirement under acts 2589, 4051, and 4151. 

LEGISLATION 

Commonwealth Act No. 236, approved September 16, 1937, au- 
thorized the President of the Philippines to designate or create an 
agency for the purpose of making sugar allotments of quotas estab- 
lished under the United States Sugar Act of 1937 on the basis of sec- 
tion 6 of the act of Congress of March 24, 1934, Public, No. 127. 
Prior to enactment of the Sugar Act of 1937, sugar allotments were 
made by the Office of the United States High Commissioner, who was 
the United States sugar authority in the Philippines. The admin- 
istration in the Philippines of matters relating to quotas of Philippine 
products shipped to the United States is now a responsibility of the 
Commonwealth government as contemplated in the Independence 
Act. 

Commonwealth Act No. 237 was enacted to correct the inequities 
resulting from the application of the acts liquidating the various 
pension funds referred to in my last report. The act provides that 
all persons who, on or before November 14, 1936, had retired under 
and pursuant to the terms and conditions of those retirement acts, 
and were then receiving the benefits provided by said acts and the 
beneficiaries of said persons, and all beneficiaries of deceased persons 
previously retired under said acts, shall hereafter receive and be paid 
the full amount of the annuities which had then accrued to them or 
may hereafter accrue to them under the terms of the repealed acts in 
question. 

Commonwealth Act No. 238 abolishes the cedula tax. 

Commonwealth Act No. 241 appropriates P5, 000,000 to replace 
the average annual proceeds of the cedula tax to the provinces, cities, 
and municipalities. 

Commonwealth Act No. 240, approved December 8, 1937, appro- 
priates the sum of P5, 050, 000 for elementary school buildings. 

Commonwealth Act No. 242 provides for an annual appropriation 
of Fl, 000, 000 from the national government toward the support of 
the city of Manila as the capital and seat of the national government. 

Commonwealth Act No. 244 provides that the National Assembly 
shall convene in regular session on the fourth Monday of January of 
each year and if said day is a legal holiday, then on the next succeed- 
ing day which is not a legal holiday. 

NATIONAL RELIEF 

The National Relief Board was created by Executive Order No. 61 for 
the purpose of carrying out the provisions of Commonwealth Act 
No. 90, approved October 26, 1936, appropriating Fl, 500,000 for relief 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 17 

in the different provinces devasted by typhoons, floods, or other pubhc 
calamities. The board determines the amounts necessary for rehef 
and, subject to the approval of the President, allots the necessary 
funds. The board stands ready to meet any emergencies. 

The disasters in 1937 included the floods in the Cagayan Valley 
which occurred in December 1936 and a disastrous fire in the Tondo 
district of Manila in April 1937. Two destructive typhoons, one on 
November 11, 1937, wh'ch swept the provinces of Tayabas, Pampanga, 
Bataan, Zambales, and the second, on November 17, 1937, which 
struck Antique, Capiz, Cebu, Iloilo, Leyte, Mindoro, Negros Occiden- 
tal, Romblon, and Samar, led the National Assembly to appropriate 
P500,000 for relief of the sufferers. Before action by the assembly, 
the National Relief Board had already taken necessary steps to aid 
the stricken areas. The funds were largely used in the rebuilding and 
repair of destroyed and damaged school buildings, sea walls and dikes, 
and the repair of demaged roads. 

On January 1, 1937, the board had Fl, 399, 900, remaining on hand 
from the above appropriation. On December 31, 1937, the board had 
on hand a balance of F650,000. 

The Philippine Red Cross (American National Red Cross) had 
total receipts of F777,329 during the year, and a total expenditure of 
F574,650.53, leaving total cash resources of F203, 178.45 at the end 
of the year. In the areas suffering from disaster, the Red Cross ren- 
dered assistance to more than 180,000 persons who were victims of fire, 
flood, and storms. 

The United States Army cooperated by the loan of tentage for the 
Tondo fire sufferers in Manila, while the Philippine Army extended 
aid in the major disasters by assigning personnel to assist in carrying 
out rehef work. 

THE INSTITUTE OF NATIONAL LANGUAGE 

Pursuant to article XIII, section 3, of the Constitution of the 
Phihppines, which provides that "the National Assembly shall take 
steps toward the development and adoption of a common national 
language based on one of the existing native languages," the first 
National Assembly, in its first regular session, enacted Commonwealth 
Act No. 184, approved November 13, 1936, establishing an Institute of 
National Language. The institute as organized consists of seven 
members, each representing one of the principal linguistic groups of the 
Philippines. 

The institute has made an extensive study of all the native lan- 
guages, with a view to determining wh^ch is the most developed and 
most widely used and accepted, and, hence the most adaptable as the 
basis of the national language. As a result of the study, the institute 
finally recommended the adoption of Tagalog as the most adaptable 
and on December 30, 1937, Executive Order No. 134 was issued 
approving the adoption of Tagalog as the basis of the national lan- 
guage of the Philippines. 

ELECTIONS 

Elections for provincial, city, and municipal officials were held on 
December 14, 1937, and the newly elected candidates assumed office 
on January 1, 1938, for a period of 3 years. 



18 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

WOMAN SUFFRAGE 

Article V of the constitution provides that ''the National Assembly 
shall extend the right of suffrage to women, if in a plebiscite which 
shall be held for that purpose witliin 2 years after the adoption of 
this Constitution, not less than 300,000 women possessing the neces- 
sary qualifications shall vote affirmatively on the question." The 
plebiscite was held on April 30, 1937, pursuant to Commonwealth 
Act No. 34. A total of 492,032 votes were cast by female voters, 
out of 588,052 qualified registrants. Affirmative votes numbered 
447,725 against 44,307 negative. 

THE CENSUS COMMISSION 

Pursuant to the provisions of Commonwealth Act No. 170, the 
Census Commission was created on December 4, 1936. The work done 
in 1937 was cliiefly preparatory. Blank forms have been prepared, 
printed, and distributed and the field work will be actively carried 
out in 1938. Of the total appropriation of Pi, 500, 000, there has been 
expended at the end of 1937 a total of F210,213.60. 

IMMIGRATION AND EMIGRATION 

The administration of existing immigration laws was transferred 
from the Bureau of Customs to the Department of Labor, effective 
January 1, 1937, pursuant to Commonwealth Act No. 139 and 
Executive Order No. 81. 

During the year 1937 a greater number of persons arrived in the 
Philippines than during the previous year. Excluding the enlisted 
men and persons attached to the military and naval forces of the 
United States, a total of 44,310 persons arrived in, and 25,331 persons 
departed from, the Philippines as compared with 37,021 arrivals and 
27,648 departures in 1936. 

Of the 6,173 Americans, 2,921 went to the United States and other 
insular possessions and 3,252 to foreign countries; of the 3,208 FiH- 
pinos, 704 went to the United States and insular possessions and 2,504 
to foreign countries; of the 9,516 Cliinese departures, 2 went to the 
United States and other insular possessions and 9,514 to foreign coun- 
tries, of which 1,828 were emigrants and 7,686 nonemigrants ; of the 
3,336 Japanese, all went to Japan and other foreign countries, of which 
1,935 were emigrants and 1,401 nonemigrants. 

One hundred sixteen aliens consisting of 112 Chinese, 1 East 
Indian, and 3 Russians were deported from the Pliilippines in 1937 as 
compared with 272 ahens, consisting of 270 Chinese, 1 East Indian, 
and 1 Russian in 1936. 

Of the 10,620 immigrants for 1937, 5,170 were Chinese, 4,170 were 
Japanese, and all other nationalities totaled 1,280. 

VISIT TO THE UNITED STATES 

After an exchange of messages with Hon. Frank Murphy, United 
States High Commissioner, who was then in the United States, the 
latter suggested the desirabihty of my going to Washington for a 
prehminary discussion of the question as to the required changes in 
the provisions of the Tydings-McDuffie Act. I left for the United 
States on January 23, 1937, arriving in February, and I returned to 
Manila on August 17, 1937. 



ANNUAL, REPORT OF THE PRESIDENT OF THE PHILIPPINES 19 

During this time I took advantage of the opportunity to visit 
Mexico, Cuba, France, and Germany for the purpose of making first- 
hand observation of conditions in those countries. On the way to the 
United States, I also passed through China and Japan. 

I desire to make of record my appreciation of the courtesies rendered 
to me by the governments of those countries, m.ore especially those 
received in Mexico and Cuba where the official honors rendered due 
my station were rivaled only by the demonstrations of affection to the 
people of the Philippines by the Mexicans and Cubans who are bound 
with us by historic associations. 

PHILIPPINE-AMERICAN TRADE CONFERENCE 

On the day of my arrival in Washington I discussed with the Presi- 
dent of the United States the unsatisfactory condition from the point 
of view of the Filipino people of their political as well as economic 
relations with the United States. I submitted to the President the 
question of the unstable trade relations between the United States and 
the Philippines and recommended that the whole question of American- 
Philippine relations be reconsidered so as to provide a more equitable 
and stable trade arrangement between the two countries for a limited 
number of years beyond the date for the granting of independence — a 
date wliich I thought, and so stated to the President, should be set 
at either the 30th of December 1938, or the 4th of July 1939. 

Following the conference with the President of the United States, 
I had various conferences wdth the Honorable Francis B. Sayre, Assist- 
ant Secretary of State and Chairman of the Interdepartmental Com- 
mittee on Philippine Affairs. As a result of these conferences, the 
Joint Preparatory Committee was organized consisting of American 
experts appointed by the President of the United States and Pliilippine 
experts appointed by the President of the Philippines. As stated in 
the joint press statement released in Wasliington at the time, the 
Committee was created for the principal purpose of studying the 
economic factors in Philippine- American relations and making recom- 
mendations regarding future trade relations between the two countries. 

Hon. John Van A. MacMurray, United States Ambassador to 
Turkey, was appointed Chairman of the Committee. Mr. Joseph 
E. Jacobs, United States State Department, was appointed vice 
chairman of the Committee and chairman of the American section 
and Hon. Jose Yulo, secretary of justice of the Commonwealth 
government, was appointed vice chairman of the Committee and 
chairman of the Philippine section. Hearings were held in Wash- 
ington, San Francisco, and in the Philippines. The members of the 
Committee arrived in Manila in August 1937, visited most of the 
Provinces of the Philippines, and the American members departed 
on November 10, 1937. The Committee thereafter resumed sessions 
in Washington, where its report was finally completed on May 20, 
1938. 

CONCLUSION 

In conclusion, I desire to express my deep appreciation of the spirit 
of helpfulness that has animated all agencies of the United States 
Government in the Philippines. The garrison of United States troops, 
under the leadership of Major General Lucius R. Holbrook, since 
assigned elsewhere, has been of incalculable assistance in the develop- 

119579—39 4 



20 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

ment of our national defense plans. Both under ordinary conditions 
and in emergencies, the Commonwealth government could count with 
certainty upon the effective cooperation and good will of all military 
personnel. In the same spirit, all other agencies of the United States, 
particularly the United States Navy, have stood ever ready with 
friendly counsel and assistance. The involved and important tasks 
that still await accomphshment under the Commonwealth govern- 
ment can be approached with confidence because of the cooperative 
and sympathetic attitude of the representatives of the United States 
Government in the Phihppines. 

It is also a pride and satisfaction to acknowledge the loyalty and 
conscientious effort of the ofl&cials and personnel of the various 
departments of the Commonwealth government and of the National 
Assembly which gave to the government in 1937 a satisfactory measure 
of progress along so many lines. 
Respectfully, 

Manuel L. Quezon. 



APPENDIXES 



Appendix I. Financial Operation op the Commonwealth Government 
During the Fiscal Year 1937 

Income, expenditures, and surplus. — During the fiscal year 1937, the national 
government realized a total income of P'230, 800,026. 89 for all the current funds, 
including the coconut-oil excise tax, while the total expenditures from the same 
amounted to PI 13,889,971.42. The following statement shows the result of the 
operation of each of the current funds during the year: 



Fund 


Collections 


Expenditures 


Surplus 


General fund 


P210, 072, 791. 32 

24, 581, 727. 27 

506, 520. 00 


P92, 552, 978. 87 

25, 191, 484. 25 

506, 520. 00 


P'117, 519, 812. 45 


Special funds .--....-.-... 


I 609, 756. 98 


Bond fund . . . . . _ . . 








Total 


235, 161, 038. 59 


118, 250, 983. 12 


116, 910, 055. 47 






Less- 
General fund appropriations considered as 
income of special funds 


2, 641, 008. 04 

1, 213, 484. 08 

506, 519. 58 


2, 641, 008. 04 

1, 213, 484. 08 

506, 519. 58 




Reversions of surplus to general fund con- 
sidered as expenses of the special funds 




Reversion of income to general fund consid- 








Total 


4,361,011.70 


4,361,011.70 








Net total 


230, 800, 026. 89 


113, 889, 971. 42 


116, 910, 055. 47 







1 Deficit. 



The operation of the reserve funds the same period is shown in the following 
statement : 



Fund 


Collections 


Expenditures 


Surplus 


Sinking funds 


i>5, 517, 699. 43 
2, 253, 918. 39 
63, 301, 318. 00 


S'4, 178, 827. 26 

352, 204. 05 

50, 123, 043. 00 


PI, 338, 872. 17 


Exchange standard fund 


1, 901, 714. 34 


Treasury certificate fund 


13, 178, 275. 00 






Total . 


71, 072, 935. 82 


54, 654, 074. 31 


16,418,861.51 







Income in 1937 and 1936, general fund, compared. — The collections for the general 
fund that were realized in 1937, compared with those of 1936, were as follows: 





Fiscal year 1937 


Fiscal year 1936 


Increase (+), decrease (— ) 


Items 


Amount 


Ratio 
to total 
income 
expense 


Amount 


Ratio 
to total 
income 
expense 


Amount 


Percent- 
age based 
on 1936 
figures 


Revenue from taxation 


i'92,230,195. 87 

113, 827, 828. 20 

4, 837, 255. 92 

18, 281, 892. 26 

409, 354. 64 
1, 213, 500. 00 


Percent 

39.96 

49.32 

2.10 

7.92 

.18 
.52 


S'72,704,866. 72 


Percent 
70.24 


+S'19,525,329. 15 

+113, 827, 828. 20 

+257, 109. 98 

+2,999,641.01 

-4, 475, 619. 06 

+1, 213, 500. 00 
-6, 050, 000. 00 


+26. 86 


Coconut-oil tax in United States. 




Incidental revenue.. . . 


4, 580, 145. 94 
15, 282, 251. 25 

4, 884, 973. 70 


4.42 
14.77 

4.72 


+5.61 


Earnings and other credits 

Repayment of loans and ad- 
vances - . 


+19. 63 
-91.62 


Proceeds of loans for the con- 
struction of permanent 
bridges . 




Transfer from exchange stand- 
ard fund 


6, 050, 000. 00 


5.85 


-100.00 










Total receipts and trans- 
fer 


230,800,026.89 


100. 00 


103, 502, 237. 61 


100. 00 


+127, 297, 789. 28 


+122. 99 







21 



22 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 
Appendix II. — Expenditures by functional purposes 





Fiscal year 
1937 


Fiscal year 
1936 


Increase (+), 
decrease (— ) 


Ratio to total 
expenditures 


Items 


Fiscal 
year 
1937 


Fiscal 
year 
1936 


Revenue service 


10, 557, 818. 76 


8, 058, 382. 92 


+2, 499. 435. 84 


Percent 
9.27 


Percent 






Expense of revenue collection ._ 


2, 875, 936. 20 
7, 681, 882. 66 
8, 065, 084. 63 


2, 014, 432. 51 
6, 043, 950. 41 


+861, 503. 69 
+1, 637, 932. 15 


2.52 

6.75 


2 18 


Operating expense of commercial and 
industrial units.. 


6 54 






Debt service 


8, 395, 350. 13 


-330, 265. 50 


7.08 


9.00 




Interest and exchange on national 
government bonds 


5, 829, 905. 42 
2, 235, 179. 21 


5,854,175.42 
2, 541, 174. 71 


-24, 270. 00 
-305,995.50 


5.12 
1.96 


6 34 


Contribution to sinliing funds of na- 
tional government bonds.. 


2 75 






General welfare service . 


77, 448, 356. 69 


62, 096, 925. 47 


+15,351,431.22 


68.00 


67 23 






E.xecutive direction and control 

Legislation 


4, 019, 490. 03 

1,342,135.84 

2, 733, 404. 80 

16, 198, 275. 96 

582, 040. 27 

4, 930, 165. 28 

150,758.74 

108,231.71 

2, 325, 703. 48 

19, 962, 230. 49 

898, 797. 08 

876,016.75 

28,111.60 

944, 299. 60 

10, 326, 764. 27 

10, 646, 809. 97 

213, 803. 46 
101,838.91 
935, 963. 36 
123, 515. 09 


3. 230, 554. 59 

1, 250, 573. 34 

2, 754, 656. 81 
10, 716, 476. 78 

473, 975. 49 

4, 231, 848. 26 
132, 822. 63 

75, 093. 43 

1, 785. 428. 37 

18, 035, 628. 87 

783, 520. 08 

481. 140. 34 

10. 984. 28 

737, 157. 55 

7, 630, 147. 56 

8,849,111.59 

240, 447. 36 

5, 737. 18 

540, 884. 45 

130, 736. 51 


+788, 935. 44 

+91, 562. 50 

-21,252.01 

+5, 481, 799. 18 

+ 108,064.78 

+698,317.02 

+17,936.11 

+33, 138. 28 

+540, 275. 11 

+ 1,926,601.62 

+115,277.00 

+394, 876. 41 

+ 17,127.32 

+207, 142. 05 

+2, 696, 616. 71 

+1, 797, 698. 38 

-26,643.90 

+96, 101. 73 

+395, 078. 91 

-7, 221. 42 


3.53 

1.18 

2.40 

14.22 

.51 

4.33 

.13 

.09 

2.04 

17.53 

.79 

.77 

.02 

.83 

9.07 

9.35 

.19 
.09 
.82 
.11 


3.50 
1 35 


Adjudication 




National defense 


11 60 


Law and order. . 


51 


Public health 


4 58 


Protection against force majeure _ 

Regulation of public utilities- 


.15 
08 


Other protective service 


1 93 


Public education 


19 53 


Public correction 


85 


Public charity- 


52 


Other social improvement 


01 


Conservation of natural resources 

Development of commerce 


.80 
8 26 


Development of agriculture 


9 58 


Development of industrial arts and 
sciences 


26 


Development on mineral resources 

Other economic development 


.01 
.59 


Philippine publicity 


.14 






Investments 


11, 982, 818. 95 


12, 690, 908. 32 


-708, 089. 37 


10.52 


13 74 






Purchase of Philippine National Bank 
stock (private shares), Act 3174 

Advances for the payment of interest 
and exchange on Philippine Ry. Co. 
bonds 


800. 00 

350, 936. 45 

211, 560. 00 

0.00 

9, 000, 000. 00 

2, 000, 000. 00 

50, 000. 00 

369, 522. 50 


10, 240. 00 

683, 920. 00 

706, 748. 32 

9, 990, 000. 00 

1, 000, 000. 00 

300, 000. 00 

0.00 

0.00 


-9, 440. 00 

-332, 983. 55 

-495,188.32 

-9, 990, 000. 00 

+8,000,000.00 

+ 1,700,000.00 

+50, 000. 00 

+369, 522. 50 


.31 

.19 

0.00 
7.90 
1.76 
.04 

.32 


.01 

.74 


Advances for the payment of interest 
and exchange on Manila R. R. Co. 
bonds 


77 


Loan to Manila R. R. Co. for the re- 
demption of the Southern Lines 
bonds 


10 82 


Purchase of stocks of the National De- 
velopment Co 


1.08 


Purchase of stocks of the Manila R. R. 
Co 


32 


Advance to National Power Corpora- 
tion 


0.00 


Restoration and replacement of sink- 
ing funds investments in Philippine 
Ry. Co. and Manila Ry. Co., Ltd. 
bonds 


00 






Miscellaneous charges— Retirement gra- 
tuities 


1, 053, 754. 59 
4, 782, 137. 80 


1, 124, 625. 85 
0.00 


-70, 871. 26 
+4, 782, 137. 80 


.93 
4.20 


1.22 


Transfer to government service insurance 
system 


0.00 






Total functional expenditures (see 
budget statement) 


113, 889, 971. 42 


92, 366, 192. 69 


+21, 523, 778. 73 


100.00 


100.00 







^oitij^ 



Detailed statement of all the 


outstanding bonds issued by the various branches and entities 


of the Commonwealth o/ the Philip-pines showing the hiator 


1/ and the present status of each as of Dec. SI, 19S7 






Nature of bond 


Authority of issue 


Date of— 


Dura- 
tion in 
years 


Inter- 
per 


Amount authorized 


Sinking fund reserve 


Net bonded 
liability 




Name of booil 


Act of Con- 
Eiess of the 


Act of the PhUllp- 
plne Islands Leg- 
islature 


Issue 


Maturity 


Total 


Issued 


Unissued 


Cash 


Investments 


Canceled 
bonds. Act 3014 


Total 


Purpose of issue 






No. 


Date approved 




Xatiooal govenuneot: 


Registered..- 


Feb. 6, 1905 
Aue. 29, 1916 
July 21,1921 

do 

Mar 31, 1922 

do 


1954 
2615 
2940 
2999 
3013 
3058 

3413 
3413 

3417 
3417 
3417 


May 20, 1900 
Feb. 4, 1916 
Feb. 6,1921 
Feb 2,1922 
Mar. 5,1922 
Juno 13, 1922 

Dec. 7,1927 

do 

do 

do- 

do 

do 


Aug. 1, 1909 
Deo. 1.1916 
Aug. 1, 1921 
Feb. 1, 1922 
July 1. 1922 
July 1.5, 1922 

Mar. 1.1928 
Sept. 16.1929 
Mar. 15, 1930 

Apr. 1. 1928 
Oct. 16,1929 
Apr. 16,1930 


Aug. 1, 1939 
Dec. 1. 1946 
Aug. 1.1941 
Feb. 1, 1962 
July 1, 1962 
July 15, 1952 

Mar. 1,1058 
Sept. 16, 1959 
Mar. 15,1960 

Apr. 1, 1958 
Oct. 16.1959 
Apr. 15.1900 


10-30 
10-30 
20 
30 
30 
30 

30 
30 
30 

30 
.30 
30 


Percent 
14 

14 

'5H 

'6 

'4« 
MM 

MM 

mH 


P3, 000, 000. 00 
8,000,000.00 
20,000.000.00 
10,000.000.00 
43.000.000.00 
47,000,000.00 

1,600,000.00 
1,500,000.00 
1, 000, 000. 00 

1, 600, 000. 00 
1,000,000.00 
1,850,000 00 


r3, 000,000. 00 

8,000,000.00 
20,000,000.00 
10, 000, 000. 00 
23,000,000.00 
46,000.000.00 

1,600,000.00 
1,500,000.00 
1,000,000.00 

1,600,000.00 
1,000,000.00 
1,860,000.00 




Til, 364. IC 
86, 660. 97 
1. 771. 061. 52 
' 29. 247. 93 
• 63. S49. 00 
943. 338. 80 

1,084 66 
12.699.61 
3,873.01 

5,685.84 

6," 202. 00 


PU74.000.00 
1,463,000.00 
8,305,500.00 
1, 319, 000. 00 
2, 563, 500. OO 
4,686,600.00 

135.000.00 
176.000 00 
161.000.00 

99, 600. 00 
132, 600, 00 
280, 600. 00 


Tl, 744, 000. 00 
3,156,000.00 
4.910,000.00 
2,568,000.00 
6, 476, 000. 00 
11,840,000.00 

174,000.00 
78, 000. 00 


ra. 729, 364. 16 
4, 704, 660. 97 
15,047,461.52 
3,857,752.07 
8, 975, 060. 94 
17,400,838.80 

310,064.60 
265, 699. 64 
164,873.04 

309, 186. 84 
176, 621. 76 
285, 702. 00 


r270,636.84 
3,296,439.03 
4,962,638.48 
6,142,247.93 
14, 624. 349 06 
28.630,161.20 

1,189,936.44 

1, 234, 300. 36 

845, 120. 96 

1,100,811.16 

823. 378 26 

1.561,298.00 


To construct public works prelects, 

To purchase capital stock of the 
Manila R. R. Co. 

To construct irrigation systems 
and other public improvements. 

To protect the Onancial interests 
of the government. 

To provide funds for the construc- 
tion of public improvements, etc. 

To provide funds with which to 
constitute the exchange standard 
fund and the treasury certificate 
fund. 

To provide funds for the extension 
and improvement of the port of 
Cebu. Cebu. 

To provide funds for the constrac- 
■ tion and improvement of the 
port of Ilollo, floilo. 


^ cha» 


Pabll im roveraent of 1021 






Fiuancial Interests protection 

Irrigation aod otbcr permaaeot public works. . . 


do 

do 


■no, 400,000.00 

M. 000, 000. 00 


Cebu port works aod Improvement: 

First series - 

Second series 

Tbird series 

Ilollo port works and improvement: 


do 

do 

do 


do 

do 

do 








204,000.00 
20,000.00 


Second series -- 

Third series -. 


do 

---.do 


do 

do 










Total (excluding collateral bonds in the 
amount of P16,567.000 which are shown 
and lQdical«d below under the respec- 
tive entitles) 


139,360,000.00 


118,960,000.00 


20,400,000.00 


2, 771, 776. 29 


20, 346, 000. 00 


31,170,000.00 


64, 286, 775. 29 


01,663,224.71 




Provincial governments: 


Registered 

.—do 

....do 

.—do 

Coupon 

Registered 

Coupon 

V//.do'/." '.'....'.'". 

....do 

.-..do 

.-..do 

.-..do 

Registered- - 

Coupon and reg- 
istered. 
....do 


Majr 31, 1922 

do... 

do 

Jo 

do 

do 

do 

do 

do 

....do 

do 

do 

.-.do 

do 

da 

do 


3222 

3228 
3229 
3268 
3265 
3266 
3278 
3279 
3282 
3329 
3331 
3280 
3281 

3987 
3087 

3471 


Sept. 18, 1926 

Nov. 12, 1926 
Nov. 14. 1926 
Dec. 9, 1926 
Dec. 7, 1926 

do 

Nov. 30, 1926 

do 

do 

Deo. 7, 1920 

do 

Nov. 30, 1926 

do 

Dec. 3, 1932 
do 

Dec. 7, 1928 


Jan. 1, 1926 

Mar. 1.1926 
Apr. 1. 1926 
May 1. 1926 
May 1. 1927 

July i;i927 

do 

do 

do 

do 

Aug. 1, 1927 
Jan. 1, 1928 

July 1, 1933 
May 16, 1936 

May 4,1936 


Jan. 1, 1956 

Mar. 1,1956 
Apr. 1. 1956 
May 1.1956 
May 1,1967 
Juno 1,1969 
July 1. 1967 

do 

do 

do 

do 

Aug. 1, 1967 
Jan. 1. 1958 

July 1. 1963 
May 16. 1966 

May 4.1966 


10-30 

30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
10-30 
30 

30 
30 

30 


MM 

M« 
MM 

MM 
MM 

ill? 

ii 

■6 
■6 

■5 


1,121,000.00 

857,000.00 
800.000.00 
111,000.00 
196, 000. 00 
442,000.00 
260. 000. 00 
343.000.00 
955. 000. 00 
690. 000. 00 
474,000 00 
160,000.00 
330,000.00 

} 1,600,000.00 
600,000.00 


1,121,000.00 

857,000.00 
800,000.00 
111,000.00 
196,000.00 
442,000.00 
260, 000. 00 
342,000.00 
964,000.00 
090, 000. 00 
474, 000. 00 
160, 000. 00 
220,000.00 

f 1,277,700.00 
I 222, 300. 00 

600,000.00 




7, 592. 19 

26, 415. 20 
4, 707. 90 
1, 703. 85 
2,326.18 

11,207.56 
7,816.63 

10,340.33 

24.752.9S 
3, 707. 75 

13, 198. 97 
4,888 60 
2, 990. 19 

3, 957. 88 
306.25 

685.67 


108,600.00 

86.000.00 
138.000.00 
28.000.00 
66.500.00 
63.600.00 
17.500.00 
18.000.00 
63.000.00 
120. 600. 00 
36.000.00 
22.000.00 
68,000.00 

77, 500. 00 
4, 000. 00 

9, 000, 00 


181,000.00 

118,000.00 
72,000.00 


297,092.19 

230, 445. 20 
214, 707. 00 
29, 703. 85 
60,826.18 
116, 707. 65 
61, 316. 53 
80, 340. 33 
225, 762. 98 
242, 207. 76 
111,198.97 
36, 888. 50 
70, 990. 19 

81, 457. 88 
4,300.26 

9. 686. 67 


823,907.81 

626,664.80 
686. 292. 10 
81, 296. 16 
135. 173. 82 
325, 202. 45 
198,683.47 
261, 659. 67 
728, 247. 02 
447. 792. 25 
362.801.03 
123,111.60 
149,009.81 

1, 196. 242. 12 
217. 993. 76 

490,314.33 


To construct waterworks systems, 
etc. 


Pangaalnan public Improvement* 

Occidental Negros public improvement » 

Marlnduque public improvement » 














2,000.00 
42,000.00 
30,000.00 
52, 000. 00 
138.000.00 
118,000.00 
02,000.00 
10, 000. 00 
















Tarlac public iraprovemont ' 

Pampaaga public improvement ' 


1,000.00 
1,000.00 


To construct public works, etc. 
















110.000.00 




Occidental Negros public improvement: 




To construct road and to reimborse 
national government of ou^ 
standing loans contracted for 

To construct Provincial Capitol, 
























8,739,000.00 


8, 627, 000. 00 


112,000.00 


126,627.92 


910.000.00 


831, 000, 00 


1,873,627 92 


6,763,372.08 






Registered 

..-do.... 

.-..do 

....do 

....do 

....do 

...do 

...do 

..-do 

.—do 

..-do 

.-..do... 

....do 

...do 

...do 

....do - 

Coupon 

--dS":::::::::: 

....do 

....do 

Coupon and reg- 
istered. 


July 1, 1902 

Aug. 29,1916 

...-do 

....do 

Msy 31,1922 

-.-.do 

--do 

.—do 

....do 

do 

....do.. 

do 

do 

do 

....do 

do 

....do 

do.- 

do.. 

do 

do.- 

....do 


2009 
2773 
2773 
2838 
3222 
3222 
3222 
3222 
3222 
3222 
3222 
3222 
3222 
3266 
3266 
3266 
3278 
3280 
3280 
3280 
3280 
4205 


Dec. 27.1910 
Mar. 8,1918 

do 

Mar 8, 1919 
Sept. 16, 1925 

do 

do 

do 

do 

do 

do 

do.. 

do 

Dec. 7, 1925 

do 

do 

Nov, 30, 1926 

do 

do 

do 

do 

July 25,1936 


Jan. 1, 1911 

Jan. 1, 1910 

do 

do 

Jan. 1, 1926 

do 

do 

do 

do 

do 

do 

do 

do 

June 1,1926 

do 

do 

July 1. 1927 
Aug. 1.1927 

do 

do 

do 

May 16.1936 


Jan. 1.19J1 
Jan. 1, 1949 
...-do.- 

do 

Jan. 1, 1956 

do 

do.- 

.....do.- 

do.- 

do 

do.. 

....do 

do 

June 1, 1956 

do 

do 

July 1. 1957 
Aug. 1. 1957 

'.'.'.'.'.lio'.'.~'.'.'.'. 

do 

May 16,1966 


10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

10-30 

30 

30 

30 

30 

10-30 

10-30 

10-30 

10-30 

30 


M 
15 
16 
'5 

■ 4,M 
M,M 

I 4,M 

ill 

MM 

i| 

■n 

MM 




Municipal governments: 


250,000.00 

60,000 00 

90. COO. 00 

40.000.00 

8.0O0.OO 

20.000.00 

338. 000. 00 

94.000.00 

50.000 00 

3.000.00 

25. 000. 00 

169, 300 00 

104,800.00 

7,000.00 

89,000.00 

10, 000. 00 

90,000.00 

6, 000. 00 

5.000.00 

16.000.00 

37.600 00 

350.000.00 


250,000.00 
40.000.00 
90.000 00 
40.000 OO 
8.000.00 
20. 000. 00 
338, 000. 00 
94,000.00 
80,000.00 
3,000.00 
25, OOO. 00 
150.200.00 
104,800.00 
7,000.00 
89,000.00 
10, 000. OO 
90,000 00 
6,000.00 
6,000.00 
16,000.00 
37,000.00 
360,000.00 




4,917.54 
2,342.14 
2.860.10 
2,059.40 

660.32 
1. 749. 12 
4, 499. 32 
2. 174. 16 
1, 236. 69 

763.69 
1,111.89 
1, 543. 75 
2,859.88 
1, 227. 66 
3, 207. 26 
1,026.29 
3, 369. 74 
1,116.77 
1.116.77 
1,860.11 
1,612.65 

779. 95 


112.000.00 
17. 600. 00 
42, 500. OO 
18, OOO. 00 
1, 500. 00 
1, 600. 00 
43, 000. 00 
12, 500. 00 
13,000.00 


102,000.00 


218, 917. 64 
19, 842. 14 
45,360.10 
20,059.40 
2, 060. 32 
5, 249. 12 
89, 499. 32 
24 074. 16 
21, 236. 69 
763.69 
6,611.89 
42,043.75 
27.859.88 
1.727.56 
23. 207. 26 
2. 526. 20 
20. 869. 74 
1,116.77 
1,116.77 
3, 360. 11 
8. 612. 66 
6.779.95 


31.082.46 
20. 167. 86 
44, 639. 90 
19, 940 60 

6, 949. 68 
14,760.88 
248,500.68 
69,326.84 
58, 763. 31 

2, 236. 31 
18,388.11 
117,156,25 
76, 940. 12 

6, 272. 44 
65, 792. 74 

7, 473. 71 
69, 130. 26 

3,881.23 

3,884.23 
11,639.89 
28, 387. 35 
343, 220. 06 




Majayjay sewer and waterworks, Laguna- 


20,000.00 
























2,000.00 
42, 000. 00 
10,000.00 

7,000.00 




























Pavla waterworks system, Ilollo • 




3, 600. 00 
16, 500. 00 
14,000.00 
500.00 
12. 000. 00 
1,500.00 
7,500.00 


2, 000. 00 
24. 000. 00 
11,000.00 




Pototan waterworks system, Iloilo ' 

Santa Barbara waterworks system, Dollo ' 


100.00 


supply system, etc. 


Bacarra waterworks system, Hocos Norte ' 






Laoag waterworks system, Ilocos Norte * 




8,000.00 




Pasuquln waterworks system, Ilocos Norte * 










10, 000. 00 




Camaligaa waterworks system, Camarines Sur •. 
















Magarao waterworlcs system, Camarines Sur *... 




1,500.00 
7,000.00 
6,000.00 






Naga waterworks system, Camarines Sur * 

Ilollo public Improvement bouds * 


600.00 


















Total 


1. 880, 600. 00 


1, 860, 000. 00 


20, 60O. 00 


43,983.10 


331,500.00 


218, 000. 00 


593. 483. 10 


1, 266, 516. 90 




City or Manila: 

Public improvement. Act 2894 ' 




May 31,1022 
do 

..-.do 

..-do 


3061 
3362 

3456 
3466 


Mar. 11. 1922 
Nov. 17.1927 

Dec. 3, 1928 
do 


June 1.1922 
May 1.1928 

Apr. 1. 1929 
Dec. 16. 1935 


Dec. 1, 1950 
May 1,1968 

Apr. 1. 1950 
Dec. 16,1966 


28) j 
30 

30 
30 


MM 
MM 

•m 

•5 




5. 500, 000. OO 
1,000.000.00 

} 10.000,000.00 


5.500,000.00 
1,000,000.00 

f 1,000,000.00 
\ 600, 000. OO 




f • 106.542.32 

I 83, 799. 80 

6, 226. 32 

1 4,116.18 
( ' 9, 685. 67 
I 2, 242. 01 


} 897,500.00 
107, 000. 00 

1 117,000.00 
[ 7,00000 


1, 390, 000- 00 
100, OOO. 00 

00.000.00 


2,477.842.21 
212. 226. 32 

181. 110. IS 
18. 928. 68 


3, 022, 167. 79 
787, 773. 68 

818,883.82 
481,071.42 


/To construct public works and 
\ other improvements. 
To lUl lowlands ta the city of 


Lowland improvement * 


..-do... 

...do 

Coupon and reg- 
istered. 




Public improvement: 

First Isjue 

Second Issue 


} 8,500,000.00 


Manila. 
ITo construct permanent public 








Total.- , _._. 


16.600,000.00 


8,000,000.00 


8,600,000.00 


211, 613. 29 


1, 128, 500. OO 


1.560.000.00 


2.890.113.29 


5,109,886.71 




Metropolitan Water District: 

Sewer and waterworks (Manila), third series.... 


Registered - 


July 1, 1902 

M«y 31, 1922 

do 

do 

do 

do 

do 


1323 

3204 

3265 
3256 
3266 

3255 
3266 


Apr. 14,1905 

Dec. 3, 1924 

Deo. 3, 1925 

do 

do 

do 

do 


Jan. 2, 1908 

Apr. 1,1925 

Oct. 1. 1929 
Apr. 1. 1931 
Mar. 15. 1935 

Nov. 1. 1935 
Apr. 1. 1937 


Jan. 2, 1938 
Apr. 1,1955 


10-30 
10-30 


MM 
MM 

"6 

>5 
>6 


2,000,000.00 
6,000,000.00 
6, 000, 000. OO 


2,000,000.00 

6,000,000.00 

3,000,000.00 
500,000.00 
600,000.00 

500,000.00 
500,000.00 




1. 257, 779. 66 

6. 541. 62 

65, 337. 20 
2,960.47 
1, 476. 82 

10, 776. 67 


782, 060. 00 

424, 000. 00 
63,000.00 
18,000.00 

9, 000. 00 


788.000.00 

980, 000. OO 
02,000.00 


2, 045. 779. 56 

1,769.491.62 

551. 337. 20 
65, 960. 47 
19,476.82 

19, 776. 67 


1 45. 779. 56 

4,230,608.38 

2, 448, 662. 80 
434,039.53 
480, 523. IS 

480.22.1.33 
500.000.00 


To provide funds for the construc- 
tion and extension of sewer and 
waterworks systems for the city 
of Manila. 


Metropolitan Water District; 

First Issue : 


--.do 

.-..do 

Coupon and reg- 
istered. 

.-"dT::::::::::: 


lixtenslon of sewer and water- 
supply systems. 




Apr. 1, 1961 10-30 










Fourth issue 


Nov. 1.1965 
Apr. 1. 1967 


10-30 
10-30 








Fifth Issue 


1,000.000.00 


















Total 


14,000,000.00 
180, 460, 600. 00 


13,000.000.00 
150,437,000.00 


1.000.000.00 
30, 032. 600. 00 


1,341.872.34 
4. 408. 871. 94 


1, 296. 960. OO 
24, 017. 950. 00 


1, 830, 000. 00 


4, 171, 822. 34 


8. 528. 177. 66 
























Grand total. 


35,699,000.00 


64,116,821.04 


88.371.178 06 























* Unissued bonds under Acts 3013 and 3053 la the s 



0.000 aod Pl.000,000, respectively, are authorized to be canceled under Act 3383. 



'Total collateral bonds, 1»I6. .w; 
'Annual allotment receivable. 



■ Cash in hands of collecting officers. 



30 (Face p. 23) 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 23 

Appendix III. Statement of Total Assets, Liabilities, and Surplus, All 

Funds 

Total assets, liabilities, and surplus, all funds. — The total assets, liabilities, and 
surplus of all funds of the Commonwealth government at the end of the fiscal 
year 1937 were as follows: 

CURRENT ASSETS, LIABILITIES, AND SURPLUS 





Fund 


Liabilities 


Surplus 


General fund 


i'182, 792, 579. 80 
48, 491, 637. 42 
10, 165, 592. 00 


i'17, 365, 098. 46 

17, 139, 357. 02 

9, 592. 00 


1'165 427 481 34 


Special funds 


31, 352, 280. 40 
10 156 000 00 


Bond fund . 






Total 


241, 449, 809. 22 


34, 514, 047. 48 


206, 935, 761. 74 





RESERVE AND OTHER ASSETS, LIABILITIES, AND SURPLUS 



Sinking fund 

Exchange standard fund.. 
Treasury certificate fund- 
Fiduciary funds 

Depository funds 

Retirement gratuities 

Contingent assets 



Total 

Total current, reserve, and other assets . 



i'64, 115, 821. 94 
46, 725, 618. 60 

145, 333, 275. 00 
25, 899, 803. 95 
29, 231, 502. 10 
1, 829, 915. 06 
43, 359, 848. 77 



356, 495, 785. 42 



597, 945, 594. 64 



i'122, 022. 97 



25, 899, 803. 95 

29, 231, 502. 10 

1, 829, 915. 06 



57, 083, 244. ( 



91, 597, 291. 56 



P64, 115,821.94 
46, 603, 595. 63 
145, 333, 275. 00 



43, 359, 848. 77 



299, 412, 541. 34 



506, 348, 303. 08 



INVESTED AND FIXED ASSETS, LIABILITIES, AND SURPLUS 



Permanent and long-term investments. 


PllO, 055, 600. 59 

202, 099, 132. 28 

21, 972. 53 


f 35, 567, 000. 00 
112,163,500.00 


5*80, 488, 600. 59 


Real property and equipment, and public domaim . 
Determined losses — agricultural bank loans . .- 


89, 935, 632. 28 
21,972 53 








Total - 


318, 176, 705. 40 


147, 730, 500. 00 


170,446,205 40 






Grand total 


916, 122, 300. 04 


239, 327, 791. 56 


676, 794, 508 48 







I Public domain is carried in the accounts at the nominal value of PI only. 
Appendix IV. Public Debt 

During the year 1937 the total bonded indebtedness of the national government 
amounted to P150,437,000, of which tP64,115,821.94 was covered by existing 
sinking funds, thus leaving a net outstanding bonded debt of only P86, 321, 178.06. 

The following statement is a detailed account of the status of the bonded debt 
of the Commonwealth for the year ending December 31, 1937: 



24 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 









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ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 25 

Appendix VI. Government-owned Corporations 

The following statement shows the financial condition of the government-owned 
corporations on December 31, 1937: 

Outstanding capital stock 



Corporation 


Total 


Held by the 
central gov- 
ernment 


Held by the 
government- 
owned com- 
panies 


Held by priv- 
ate parties 


Philippine National Bank 


P10,000,000.00 

27, 427, 000. 00 

900, 000. 00 

14, 845, 300. 00 

2, 750, 800. 00 

320, 260. 00 
4, 000, 000. 00 


P9, 853, 000. 00 
27, 427, 000. 00 




P147,000. 00 


Manila R. R. Co.. 






Manila Hotel Co 


P871, 600. 00 


28, 400. 00 


National Development Co 


14, 845, 300. 00 




Cebu Portland Cement Co 


2, 750, 000. 00 

320, 260. 00 
4, 000, 000. 00 


800. 00 


Sabani Estate (administered by the Na- 
tional Development Co.) 






National Rice & Corn Corporation 













Surplus or deficit 



Dec. 31, 1937 



Dec. 31, 1936 



Increase (-f ), 
decrease (— ) 



Philippine National Bank 

Manila R. R. Co 

Manila Hotel Co 

National Development Co 

Cebu Portland Cement Co 

Sabani Estate. 

National Rice & Corn Corporation 



P9, 857, 067. 22 

19, 748, 826. 62 

1, 396, 949. 45 

237, 799. 53 

808, 530. 87 

5, 936. 33 

2,402,470.41 



P9, 057, 604. 02 

19, 953, 378. 11 

1,120,523.49 

1 1, 090, 385. 14 

506, 580. 99 

1 674. 52 

2, 421, 551. 31 



-f P799, 463. 20 

-204, 551. 49 

-f 276, 425. 96 

-t-1, 328, 184. 67 

-f301, 949. 88 

-f6, 610. 85 

-19,080.90 



» Deficit. 



Appendix VII (a). List of the More Important Measures Passed at the 
Second Regular Session and Special Session of the National Assembly 

Commonwealth Act No. 233: Election Law. 

Commonwealth Act No. 234: Appropriation of !P1, 200,000 for new elementary 
classes. 

Commonwealth Act No. 236: Creation of sugar administration office. 

Commonwealth Act No. 237: Restoration and payment of all annuities due to 
persons retired under the Teachers', Health, and Constabulary Pension Acts, 

Commonwealth Act No. 238: Abolition of cedula tax. 

Commonwealth Act No. 239: Appropriation of P500,000 for relief of communi- 
ties and indigent sufferers from typhoons, floods, or other public calamities. 

Commonwealth Act No. 240: Appropriation of F5,050,000 for elementary school 
buildings. 

Commonwealth Act No. 241: Appropriation of F5, 000,000 to compensate prov- 
inces, subprovinces, chartered cities, municipalities, and municipal districts for 
the loss from their revenues on account of abolition of the cedula tax. 

Commonwealth Act No. 242: Annual appropriation of Fl, 000,000 for improve- 
ment of the City of Manila. 

Commonwealth Act No. 245: General Appropriation Act for 1938. 

Commonwealth Act No. 246: Prescription of form of the Budget and regulation 
of expenditures of authorized appropriations. 

Commonwealth Act No. 248: Granting employees retired under Osmena Retire- 
ment Act the benefits granted to employees retired under the Gratuity Act 
upon retirement in the service. 

Commonwealth Act No. 251: Tax on occupation. 

Commonwealth Act No. 253: Free entry of woods, barks, roots, etc., for dyeing 
or tanning purposes. 



26 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



Appendix VII (b). List of the More Important Executive Orders Issued 
By the President of the Philippines 

Executive Order No. 85, dated Janimry 22, 1937, reorganized the municipality 
of Dulawan, Cotabato, into 8 barrios, formerly 29 barrios. 

Executive Order No. 86, dated January 22, 1937, same for Midsayap, Cotabato, 
formerly 72 barrios into 8 barrios. 

Executive Order No. 92, dated January 23, 1937, requires a reserve of 5 percent 
to be set up from the general appropriations authorized for the year 1937 under 
Commonwealth Act No. 38, for the purpose of securing or safeguarding the interest 
of the government by requiring and insuring the stability of a balanced budget. 

Executive Order No. 93, dated January 23, 1937, places under the control of the 
division of purchase and supply all unused and dormant supplies and equipment 
of the national government and requiring the approval of the commissioner of 
the budget on all requisitions and orders for supplies, materials, furniture, and 
equipment. 

Executive Order No. 98, dated April 24, 1937, prohibits the automatic renewal 
of contracts and requires public bidding before entering into new contract. 

Executive Order No. 101, dated June 14, 1937, fixes the cordage allowance during 
a 12-month peiiod beginning May 1, 1937. 

Executive Order No. 104, dated June 14, 1937, prescribes the method of coursing 
official correspondence to the United States and to foreign countries. 

Executive Order No. 105, dated August 16, 1937, amends Executive Order No. 
49, of 1936, relative to minimum pay to common laborers and employees of 
the national government and fixing a minimum wage at PI. 25 for common 
laborers employed by the national government in the city of Manila and PI 
for those of the provinces and chartered cities. 

Executive Order No. 107, dated August 24, 1937, designates the commissioner of 
health and welfare in collecting information desired by the permanent central 
opium board. 

Executive Order No. 118, dated September 16, 1937, creates the Philippine 
Sugar Administration Office. 

Executive Order No. 122, dated October 8, 1937, creates the national unemploy- 
ment board. 

E.xecutive Order No. 123, dated October 15, 1937, promulgates regulations to 
govern salvage work in the Philippines. 

Executive Order No. 125, dated October 25, 1937, creates a lighthouse board. 

Executive Order No. 126, dated November, 4 1937, makes the budget office the 
repository of all dormant supplies for issue to any branch of the service. 

Executive Order No. 127, dated November 9, 1937, creates an advisory abacd 
committee. 

Executive Order No. 130, dated November 20, 1937, amends Executive Order 
No. 61 creating the national rehef board re expenditure of PI, 500,000 appro- 
priated by Act No. 90. 

Executive Order No. 134, dated December 30, 1937, proclaims the national 
language based on "Tagalog." 

Executive Order No. 135, dated December 31, 1937, establishes classification of 
roads — national, provincial, and municipal — and authorizes responsibility for 
maintenance. 

Executive Order No. 136, dated December 31, 1937, provides for additional air- 
ports and landing fields and classifies them. 

Appendix VIII. Overseas Trade During the Period Under Review 

Imports. — The following comparative statement shows the principal imports of 
the years 1937 and 1936: 



Articles 

Iron and steel and manufactures thereof—- 

Cotton ^oods 

Mineral oils 

Automobiles, parts of, and tires for 

Meat and dairy products 

Wheat flour 

Papers and manufactures thereof 

Tobacco products 

Electrical machinery, apparatus, and appliances 

Silk and rayon and manufactures thereof -.. 

All other imports 

Total 

1 Decrease. 



1937 



P38, 680, 875 

34. 908, 379 

13, 004, 883 

11,978,029 

10, 081. 668 

8, 204, 725 

7, 621, 198 

7, 340, 246 

6, 854, 637 

6, 195, 701 

73, 181, 149 



218, 051, 490 



1936 



p.32, 031, 608 

30, 535, 257 

14, 656, 838 

11,408,137 

11, 024, 354 

7, 900, 519 

6, 442, 647 

7, 130, 860 

5, 830, 861 

5, 764, 409 

69, 526, 859 



Increase (+), 
decrease (— ) 



+P6, 649, 267 

+4, 373, 122 

-1,651,955 

+569, 892 

-942, 686 

+304, 206 

+1, 178, 551 

+209, 386 

+1,023,776 

+431, 292 

+3, 654, 290 



202, 252, 349 +15, 799, 141 



Percent 



20.76 

14.32 

1 11.27 

5.00 
18.55 

3.85 
18.29 

2.94 
17.56 

7.48 

5.26 



7.81 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 27 

Exports. — The following comparative statement shows the principal exports of 
the years 1937 and 1936: 



Articles 



1937 



Increase (+), 
decrease (— ) 



Sugar... 

Abac& 

Coconut oil 

Copra 

Gold bullion 

Desiccated coconut 

Tobacco products 

Lumber 

Embroideries, cotton and silk. 

Copra meal or cake 

A.11 other exports 



P115, 412, 387 

43, 279, 373 

41, 051, 073 

31, 969, 399 

27, 365, 429 

12, 693, 263 

9, 966, 216 

7, 886, 224 

7, 377, 606 

5, 800, 358 

31, 120, 066 



P123, 874, 644 

34, 177, 197 

27, 743, 518 

29, 999, 568 

20,493,158 

8, 794, 125 

10, 489, 566 

6, 199, 222 

8, 549, 110 

3, 659, 079 

21,371,128 



-P8, 462, 257 
+9, 102, 176 

+ 13,307,555 
+ 1,969,831 
+6, 872. 271 
+3, 899, 138 
-523,350 
+ 1,687,002 
-1,171,504 
+2, 141, 279 
+9, 748, 938 



16.83 
26.63 
47.97 
6.57 
33.53 
44,34 
14.99 
27.21 
1 13. 70 
58.52 
43.62 



Total 333,921,394 295,350,315 +38,571,079 



13.06 



1 Decrease. 



Foreign trade. — The following comparative statements show the monthly im- 
ports and exports of the Philippines during the years 1937 and 1936, resulting in a 
favorable balance of trade to this country in said years as follows: 

TOTAL IMPORTS BY MONTHS 



Month 



Value 



1936 



Increase 
(+) de- 
crease (— ) 



January 

February.. 

March 

April 

May 

June 

July 

August 

September. 

October 

November- 
December - 

Total 



P13, 
13, 
25, 
20, 
16, 
19, 
19, 
13, 
16, 
25, 
16, 
18, 



634, 298 
875, 544 
807, 287 
035, 595 
210, 845 
094, 644 
227, 946 
748, 557 
354, 896 
231, 038 
302. 051 
628, 789 



f 19, 040, 253 
14, 919, 652 
17, 192, 315 
12, 910, 051 
14, 624, 503 
19, 184, 426 
14, 936, 619 

16, 861, 188 

20, 473, 570 

17, 499, 952 
12, 960, 363 

21, 649, 457 



202, 252, 349 



Percent 
-28.3 
-6.9 
+50.1 
+55.1 
+10.8 
-.4 
+28.7 
-19.0 
-20.1 
+44.1 
+25. 7 
-13.9 



+7.8 



TOTAL EXPORTS BY MONTHS 



January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Total 

Total trade 

Balance of trade in favor of the PhUippines 



1 Gold included exports. 



P25, 767, 765 
27, 660, 883 
30, 957, 039 
31, 090, 739 
29, 305. 037 
33, 847; 606 
29, 401, 808 
31, 885, 090 
26, 144, 772 
20, 980, 090 
19, 722, 705 
27, 157, 860 



1 333, 921, 394 



551, 972, 884 



115,869,904 



P20, 585, 391 

29, 769, 760 
26, 978, 822 

30, 289, 180 
34, 582, 727 
30, 453, 973 
23, 096, 512 
16, 978, 545 
19, 713, 935 
15, 420, 413 
16, 542, 894 
30, 938, 163 



1 295, 350, 315 



497, 602, 664 



93, 097, 966 



o 



+25.1 
-7.0 
+ 14.7 
+2.6 
-15.2 
+11.1 
+27.2 
+87.7 
+32.6 
+36.0 
+19.2 
-12.2 



+ 13.0 



+10. 93 



+24.46